3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 1 Science/Technology Parks and Incubators in ESCWA Member Countries: Models and Criteria Expert Group Meeting Technology Capacity Building Initiatives ESCWA November 2000 Technology Section - ESCWA ESCWA

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 2 Contents Introduction: the need for S and T initiatives Science/technology parks Case studies: ­Sophia Antipolis Technopole ­Cambridge Science Park Technology incubators Case study: Israeli Incubators Program High technology industry clusters Criteria for enhancing success

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 3 Introduction: the need for Science and Technology Initiatives Investment in new technologies has tangible socioeconomic impact and leads to a dynamic system of innovation Clear policy objectives are needed Coordination of efforts between government, private sector and NGOs New models: technology parks & incubators, innovation centers and industry clusters

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 4 Science/Technology Parks What? Property-based initiatives with formal links to universities and research institutions Encourage formation and growth of knowledge- based businesses Actively support technology brokering and enhance business skills in tenant firms Provide assistance and advice for new technology-based firms

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 5 Science/Technology Parks Why? Catalyst for local development and employment Hasten technology transfer to SMEs Facilitate formation of networks/linkages based on mutual needs and benefits Provide access to research facilities Constitute a center of innovation Give prestige and status to tenant firms + collective identity

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 6 Science/Technology Parks Tenants Firms: diverse in size, business interest, technological status and future ambitions; include start-ups, outward/ inward looking firms. Research institutions: independent, corporate, public, university labs,… Universities: branches for education and training; may host the park. Incubators: related to research on the park. Services: gov. agencies, finance institutions, conference services, business center, …

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 7 Science/Technology Parks Management Important role in success/failure of park Determines park’s character Should be based on tenants needs Should have clear objectives Should play a “technology broker” role Should take into consideration the park phases: institutional and entrepreneurial

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 8 Sophia Antipolis Technopole First distinguished technopole in Europe (1969) Model for economic development 2,300 hectares; 1,200 firms; 21,000 engineers; 5,000 researchers; university; engineering schools; research centers; … Center of excellence in new technologies Innovation center

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 9 Sophia Antipolis Technopole Sectors of activity

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 10 Sophia Antipolis Technopole Evolution of institutions

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 11 Sophia Antipolis Technopole Evaluation Model of a “Science City” followed by the Japanese and Edinburgh University Not very innovative in the beginning, it has become an internationally recognized center Large number of start-up companies and new jobs Development of new specialized training and research programs Socio-professional associations and clubs

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 12 Cambridge Science Park A truly entrepreneurial high technology center Aims at increasing interaction between Cambridge University and high-tech industries 64 companies on the park; 4,000 employees Cluster of nearly 1,200 high technology companies in the Cambridge area employing nearly 35,000 people

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 13 Cambridge Science Park Sectors of activities

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 14 Cambridge Science Park Evaluation The park has been at the origin of virtually all new companies in the area Symbol of the innovative milieu: “Cambridge Phenomenon” Success due to: quality investment, quality science and quality people Negative aspect: takeover of small companies by multinationals

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 15 Technology incubators What? Creation and nurturing of new technology-based enterprises Means for promoting innovative firms and commercialization of university research Tools for job creation through start-up companies Increase the chances of new firm survival and growth

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 16 Technology incubators Objectives Overall economic development Economic restructuring Addressing specific economic development problems Creating employment opportunities Commercializing new technologies Property and real-estate development ventures

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 17 Technology incubators Services Shared physical facilities and infrastructure Access to basic business related services Technology expertise Guidance and support for venture capital Management support Market information Networking

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 18 Technology incubators Organization and Management No single organizational format: flexibility, versatility and dynamism are the key criteria Management is responsible for policy, strategy and regulatory aspects Main considerations: –Networking and resources –Occupancy period, rent etc. –Graduation and follow-up

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 19 Israeli Incubators Program Objectives Started in 1990 under the supervision of the Office of the Chief Scientist at the Ministry of Industry to: –Create a sheltered environment for nurturing innovative ideas –Employ qualified Soviet immigrants –Boost Israeli exports

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 20 Israeli Incubators Program Organization Steering Committee for supervision, guidance and control of incubators Professional director, Policymaking Board and a Project Committee for each incubator High caliber professional as members Each incubator can handle R&D simultaneous projects

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 21 Israeli Incubators Program Projects Should have innovative technological ideas Entrepreneur + team of 3-6 Budget should not exceed $172,000; grant: 85% Project approval: experts + project committee + steering committee Agreement signed to ensure developer’s rights & reimbursement to the State Entrepreneur carries out ideas to the stage of product definition and proven feasibility; learns how to operate as commercial venture; after graduation, can obtain State support and outside investment

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 22 Israeli Incubators Program Achievements January 2000: –592 projects graduates, employing ~1900 people –52% went into production –Investments of $50,000 - $27 million –Total investments: $320 million (1.3M per project) ~40 start-ups leave the incubators per year Fields of activity: software, electronics, telecom, medical equipment and biotechnology Massive repositories of potential ideas

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 23 Framework for initiatives Creation and establishment of initiatives Factual and balanced feasibility study for any initiative, taking into account national priorities Prerequisites for an optimal solution include: –desirable working and living environments –proximity to a major university or research institution –steady supply of skilled manpower

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 24 Framework for initiatives Political, legislative and regulatory environments National/local political backing for initiatives needed National S and T strategy, specifying areas of priorities Intellectual property rights laws Special status should be defined for science parks, incubators and innovation centers Prominent role for private enterprises National programs to organize and promote initiatives such as incubators and technopoles Multinational initiatives

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 25 Framework for initiatives Financial aspects Adequate financial support is a key factor in the success of S&T initiatives Indirect support from governments through investment laws and tax incentives Private sector, and financial institutions should be encouraged to provide venture capital

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 26 Framework for initiatives Management Qualified managers and board of directors Adopt clear objectives and monitoring modalities Establish advisory boards in incubators involving public and private stakeholders Screening of tenants and periodic assessment Seek national and international linkages Establish strategic alliances for a global market Adapt management to maturity level of national S and T institutions Strive for top-notch S and T institutions in parks

3 November2000 Sience/Technology Parks and Incubators: Models and Criteria 27 Networking Networks are essential for the success of initiatives especially in ESCWA/Arab countries, where resources are often limited Linkages between incubators, start-up companies and investors are necessary for the good functioning of the incubator and survival of emerging companies.